Changes to the investment policy of CT Sterling Corporate Bond

The Fund can be found in our defined fund range product Preference.

SUMMARY OF CHANGES

From the Effective Dates CT is amending the Funds investment policy to reflect the integration of a range of responsible investment measures into the investment decision making process. CT believe that making the changes will align the Fund to existing and rapidly increasing investor demands for funds with clearly defined environmental and social characteristics. The changes will introduce a set of Environmental, Social and Governance ("ESG") exclusions, that will prevent the Fund from investing in bonds issued by companies that:

• fail to follow good governance practices
• derive revenue from certain industries or activities (such as coal) above stated thresholds
• breach accepted international standards and principles, as determined by the investment manager

Details of CT's good governance policy is included in the Fund prospectus. In addition to the above, CT will establish a “positive ESG tilt” to the portfolio, which will aim to compare favourably against its benchmark, over the rolling 12 month period when assessed using CT's own ESG Materiality Rating model. The model gives a rating for each bond issuer, indicating how well they are managing material ESG risks and opportunities. This approach favours bonds issued by companies with stronger ratings, which means the Fund is expected to maintain a better ESG materiality score than the benchmark over time.

With these amendments CT is required to sell bonds that do not comply with the new investment exclusions in favour of alternative investments. The extent of the anticipated realignment of the Funds portfolio will be:

The costs associated with the portfolio realignment will be borne by the Fund. However, since the changes to the portfolio will in practice be relatively minor, those costs are estimated to be no more than 0.021% of the Fund value. All the administrative costs associated with making the changes will be paid by CT.

CT has chosen to introduce the iBoxx GBP Non-Gilts Index as the benchmark of this Fund, in order to reflect the performance aims of the Fund and provide an additional measure to assess and demonstrate its performance over time.

These amendments are not expected to result in any significant changes to the way in which the Fund is currently managed or its risk profile. Please refer to the CT Notification opposite for full details of the changes and the revised investment policy.

AVAILABLE IN OUR OPEN-ARCHITECTURE PRODUCTS

The Fund can be accessed through our portfolio bonds and will be subject to the changes detailed in the CT notification opposite.

For more information regarding Columbia Threadneedle Investments funds visit www.columbiathreadneedle.com